Upwork Reports Third Quarter 2026 Financial Results
Q3 revenue $185.6M, GAAP EPS $0.25; Q4 revenue guide $169M-$177M below prior run-rate; CFO Gessert steps down Jan 1, 2027.
What this release says
Upwork reported third quarter 2026 revenue of $185.6 million, GAAP net income of $31.8 million and adjusted EBITDA of $63.8 million. Its subsidiary Lifted agreed to acquire WorkMotion, a Berlin-based employer of record, which is expected to strengthen the enterprise offering and reduce reliance on third-party employer-of-record providers once the deal is completed. Shareholders get a profitable quarter, but free cash flow fell year-over-year and fourth quarter adjusted EBITDA guidance is lower than the third quarter result.
Key figures
- Third quarter revenue
- $185.6 million
- Third quarter GAAP net income
- $31.8 million
- Third quarter adjusted EBITDA
- $63.8 million
- Third quarter free cash flow
- $53.9 million
- Fourth quarter adjusted EBITDA guidance
- $51 million to $55 million
- Full year 2026 adjusted EBITDA guidance
- $236 million to $240 million
Positive for shareholders
- GAAP net income rose 8% year-over-year and diluted earnings per share reached $0.25 versus $0.21 a year earlier.
- Business Plus GSV for small and mid-sized businesses rose 132% year-over-year in the third quarter.
- The WorkMotion acquisition is expected to strengthen the enterprise offering and provide more consistent pricing for global clients.
Negative for shareholders
- Free cash flow fell to $53.9 million from $69.4 million a year earlier.
- Cash from operating activities dropped to $65.9 million from $75.1 million.
- Fourth quarter adjusted EBITDA guidance of $51 million to $55 million is below the third quarter level of $63.8 million.
Written by Quantisnow AI from this release. Not financial advice.
Key terms
- Employer of record (EOR):
- A company that becomes the legal employer of a worker on behalf of another business, handling payroll, taxes and benefits.
- GSV:
- Gross services volume, the total dollar value of work purchased by clients through the marketplace in a period.
- Adjusted EBITDA:
- Net income adjusted to exclude stock-based compensation, depreciation, amortization, interest, taxes and certain one-time items, as defined by the company.
- Free cash flow:
- Cash from operations minus purchases of property and equipment and internally developed software costs.
FAQ
What is Upwork acquiring through Lifted?
Lifted, an Upwork company, is acquiring WorkMotion, a Berlin-based employer of record that will directly employ contingent talent across more than 30 countries. The release says the acquisition is expected to strengthen the enterprise offering.
How did Upwork's profitability change in the third quarter?
GAAP net income was $31.8 million, up 8% year-over-year, and adjusted EBITDA was $63.8 million, up 7%. Free cash flow, however, declined to $53.9 million from $69.4 million.
What is Upwork's full year 2026 adjusted EBITDA guidance?
Upwork guided full year 2026 adjusted EBITDA to between $236 million and $240 million. Fourth quarter adjusted EBITDA is guided to $51 million to $55 million.
Historical context for UPWK
Across the 25 sessions after earlier UPWK headlines, the stock closed higher 12 times and lower 13 times, with a median move of 2.5% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | UPWK | SPY |
|---|---|---|---|
| Nov 2, 2026 | Upwork Introduces Upwork Now to Help Clients Hire Experts in Minutes | +6.2% | -0.5% |
| Oct 13, 2026 | Upwork to Report Third Quarter Financial Results on November 2, 2026 | +0.3% | -0.0% |
| Aug 27, 2026 | Upwork to Present at Goldman Sachs Communacopia + Technology Conference | +3.2% | +0.7% |
| Aug 11, 2026 | Upwork Reports Second Quarter 2026 Financial Results | -15.0% | -0.3% |
| Aug 10, 2026 | Upwork Talent Is Now Everywhere AI Works | +1.7% | -0.0% |
| Jul 22, 2026 | Upwork to Report Second Quarter Financial Results on August 10, 2026 | -2.5% | -0.1% |
Keep researching UPWK
- UPWK earnings historyPast Upwork Inc. earnings releases, newest first.
- What is Earnings per share?A company's net income available to common shareholders divided by its weighted average shares outstanding, reported as basic and diluted figures.
- How to read an earnings reportAn earnings report is a company's quarterly results release, usually filed under 8-K Item 2.02. Learn how to read revenue, EPS, margins, guidance and the 10-Q.
- Earnings calendarWho reports this week, and the results as they come out.
- UPWK financial statementsRevenue, profit, cash flow and balance sheet from Upwork Inc.'s SEC filings.
- UPWK insider tradesEvery buy and sale reported by Upwork Inc. officers, directors and large holders.
- Market cap
- 30-day
- Sector
- Technology
- Industry
- EDP Services
- Listed since
- 2018
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